True or False

1. In the long run governments can decrease unemployment at the cost of more inflation
2. Generally an increase in demand for a currency accompanies a decrease in supply of that currency
3. Increasing interest rates in a country should lead to a strengthening of its currency
4. When inflation is predictably high, lenders will lose and borrowers will gain
5. When there is inflation, the nominal interest rate will be higher than the real interest rate
6. A higher rate ofincome tax will increase the effect of a government's fiscal stimulus